Pensions Reserve Fund (France)

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Fonds de Réserve pour les Retraites (French Pensions Reserve Fund)
Type public owned State-funded agency
Industry Investments
Founded July 17th, 2001
Headquarters Paris, France
Revenue Increase EUR3,282m (2012)
Net income Increase EUR1,271m (2012)
Total assets Increase EUR44,852m (2012)
Total equity Increase EUR7,494m (2012)
Employees 50

The Pensions Reserve Fund ((French) Fonds de Réserve pour les Retraites ou FRR)[1] was set up in July 2001 under the government of Lionel Jospin with the aim of using funds from privatisations of state holdings to finance the future shortfall of the state PAYG pensions system. It became operational in 2003.


At its creation the target was to build a reserve fund of 150 Bn EUR by 2020. The funds were to come from 4 sources.

1. Surpluses of certain Social security funds (Fonds de solidarité vieillesse)
2. Privatisation resources
3. Mobile phone licences
4. Stock market transaction tax

After initially receiving funds from the FSV and 1.2 Bn from the provatisation of the Autoroute company (Autoroutes du sud de la France) since 2003 the fund has been funded mainly by 65% of the investment tax of 2%. At en 2012 the fund had assets of 36.6 Bn Eur The fund was set up to guarantee financial stability of

The CNAV (Caisse Nationale d'Assurance Viellesse or National Pension Insurance Bank),
Organic (Caisse de retraite des commerçants et des chefs d’entreprises commerciales or Pensions Bank of the traders) et la
Cancava (Caisse de retraite des artisans or Pensions Bank of craftsmen).

First payments were set to start in 2020.


At December 31, 2012 the fund had assets of 36.6 Bn €[2] and was 43% over funded.[3] The 2007 Financial Crisis impacted the Fund in 2 ways: 1. Accelerated the date at which the fund needs to make payments to CNAV, ORGANIC & CANCAVA 2. Pressure on government to reduce the Public deficit to reach Maastricht targets by 2015. As a result the fund has been required to start making annual payments of 2.1 Bn € to pay off the accumulated Social security debt held by the CADES.[4] The fund will continue these payments until 2024.

The Supervisory Board of FRR[edit]

Supervisory Board members include legislators, labor/management stakeholders, representatives of the ministries under whose general supervision the FRR operates (i.e., the ministries of Social Security and of the Economy, Finance and Industry) and individuals with recognized credentials in fields that are relevant to Fund’s stated missions. The Board, which currently counts twenty members, is required to meet a minimum of twice yearly.

The Executive Board[edit]

The Executive Board has three members:

*Jean-Pierre Jouyet - Chief Executive Officer of (Caisse des Dépôts) – President of the Executive Board of FRR,
*Yves Chevalier – member of the Executive board,
*Olivier Rousseau – member of the Executive board,

The Executive Board is responsible for directing the agency and for ensuring its smooth operation. It executes investment policy guidelines and ensures compliance with them. The Executive Board reports regularly to the Supervisory Board on its management of the agency, and in particular relates information on the way in which investment policy guidelines take into account social, environmental and ethical considerations.

External links[edit]

See also[edit]